THE PRESIDENT'S DAILY BRIEF 23 AUGUST 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007799
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 23, 1974

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The President's Daily Brief
August 23, 1974
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Exempt from general
declassification uhedule of E.O. 11652
exemption category 58( I 1.(2).13)
declassified only on approval of
the Director of Central Intelligence
V I.
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
August 23, 1974
PRINCIPAL DEVELOPMENTS
Greek and Turkish Cypriot leaders continue to move
slowly toward peace talks. Moscow has called for the
convening of an international conference on Cyprus
within the UN framework. (Page 1)
Cairo has alerted US and UN officials that it is hold-
ing a four-day military exercise. Israel is preparing
for a combined arms exercise in the Sinai on August 26
and for a nationwide mobilization exercise. (Page 3)
Arab diplomatic activity is intense as Egypt strug-
gles to achieve a coordinated Arab negotiating posi-
tion for the Geneva peace talks. (Page 4)
Iran
(Page 6)
West Germany is willing to help Italy secure EC as-
sistance in financing Rome's large balance-of-payments
deficit. (Page 7)
A note on Laos appears on Page 8.
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BULGARIA
.Adapazari
*Ankara
&pens
CYPRUS
SYRIA
MEDITERRANEAN
LE DAN N
LIBYA
Territory controlled
by, Turkish forces
Kyrenia
? rnationhl
airport
4
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,
'
7r.' ?
ir
\
ssol
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Famagusta
Akrotiri
Larnaca
CYPRUS
UK Sovereign base area
/ Turkish-Cypriot enclave
0. SO 20
.556.4534"-e74
? ,"
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FOR THE PRESIDENT ONLY
CYPRUS
Greek and Turkish Cypriot leaders continue to
move slowly toward peace talks. Cypriot President
Clerides is in Athens today discussing negotiating
strategies with Greek Prime Minister Karamanlis. He
is scheduled to meet Turkish Cypriot representative
Rauf Denktash tomorrow afternoon in Nicosia. Clerides
told US Ambassador Brown that he had the support of
Karamanlis to press for negotiations that would focus
on creating a federal state on the island and revising
present boundaries.
Turkish Cypriot leader Denktash has stated that
an independent republic will be created if Greece
does not quickly agree to renew peace talks.
Although there have been no significant cease-
fire violations, UN forces on the island continue to
have trouble with local Turkish commanders. UN Sec-
retary General Waldheim said today that he had re-
jected a Turkish demand for the withdrawal of UN
forces from Turkish-held territory. Waldheim called
for an increase in the 4,300-man UN force on Cyprus.
(continued)
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The Soviets late yesterday issued their first
"official government statement" on Cyprus since
July 28. Moscow called for the convening of an in-
ternational conference within the UN framework to
protect Cyprus from outside interference, to ensure
the withdrawal of all foreign troops, and to allow
the Cypriots to solve their own problems. The par-
ticipating states would include Cyprus, Turkey, Greece,
all members of the Security Council, and other invited
states, particularly from among the nonaligned coun-
tries. These states would provide guarantees of the
independence and territorial integrity of Cyprus.
The proposal probably is partially aimed at the
Greeks who have been seeking evidence of Moscow's
support. At the same time, the Soviets continue to
avoid any direct criticism of the Turks.
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FOR THE PRESIDENT ONLY
EGYPT-ISRAEL
on Wednesday that the Egyptian army
was conducting a four-day exercise designed to famil-
iarize troops with their new positions along a defen-
sive line west of the Suez Canal. According to the
Egyptian commander, no artillery or air defense guns
will be moved because of limitations of the disen-
gagement agreement, and the exercise will not be pub-
licized to avoid raising tensions. The Egyptians
also are informing UNEF representatives about the
exercise to avoid any misinterpretation of what is
going on. This is the first instance of Cairo's
alerting US and UN officials of a major exercise--
information that Cairo must assume will be passed to
Tel Aviv.
Earlier this week, General Gamasy made a speech
designed to reassure the Arab world, and Egyptians
in particular, that Cairo's military forces were
stronger than ever and fully alerted to Israeli ac-
tions. He pointed out that Cairo was both studying
statements from Tel Aviv and watching the movements
and partial mobilization of Israeli forces.
Israel, meanwhile has set the sta e for ur h
military exercises.
the Israelis will conduct a com-
bined arms exercise in the Sinai on the night of
August 26. The attache believes the exercise will
involve less than one army division and that it will
include tactical air support. The Israelis conducted
a large-scale tactical air exercise earlier this
month.
The nationwide mobilization exercise that has
been anticipated for several weeks also appears about
to take place. "Thousands" of reservists from all
military services reportedly are to be recalled for
the 24-hour exercise.
On Tuesday, Egyptian forces fired an SA-7 mis-
sile at an Israeli F-4 aircraft flying over the Sinai
east of Suez City. According to the Egyptian chief
of staff, the missile was fired from the west bank
after the Israeli reconnaissance aircraft had pene-
trated the UN buffer zone. The Israelis lodged a
protest with the UN forces claiming that the plane
had not crossed the line of separation and was over
Israeli-held territory when fired upon.
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ISRAEL AND OCCUPIED
TERRITORIES
? Israeli Settlements
International Boundary
Armistice Line
Railroad
Surfaced Road
F-1 Israeli-occupied Territory
Se. radian?
OLAN
H IGHTS
? The Israeli seed of government Is Jerusalem,
, with foreign diplomatic representation in Tel-Avitt
2.5 5.0 Mlles
25 50 Kilometers
Tel Aviv-Vat o
---3 2 -
AMMAN
Mediterranean Sea
Port Said
30
1, ?
/
I
sh JAZ IRA
S Shaykh-j
TIRAN
3
BOUNDARY REPRESENTATION S
NOT NECESSARILY AUTHORITATIVE
55645 9 8-74 CIA
a
Red Sea 36
28
? Ar?
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FOR THE PRESIDENT ONLY
ARAB PREPARATIONS FOR GENEVA
Arab diplomatic activity is intense as Egypt
struggles to achieve a coordinated Arab negotiating
position for the Geneva peace talks. In essence,
President Sadat is bringing all the pressure he can
on the Palestinians to let Jordan take the lead in
negotiating Israeli withdrawal from the West Bank,
of the Jordan. This he sees as the key to any fur-
ther successful negotiation with Israel.
Egypt is preparing for a tripartite foreign min-
ister - level meeting with Syria and the Palestine
Liberation Organization. The meeting may come at
the conclusion of Syrian Foreign Minister Khaddam's
visit this week to Washington.
--The primary purpose of the meeting will be to
urge compromise on the PLO.
--Cairo will try to persuade Syria and the PLO
that any hope for a Palestinian state requires
that the PLO first accept Jordan's right to ne-
gotiate for the return of the Israeli-occupied
West Bank.
Egypt's effort to satisfy both Jordanians and
Palestinians has antagonized both sides. Syria,
which like Egypt is caught in the middle between
Jordan and the PLO, is also suspicious of Egypt's
motives and only reluctantly accepts Cairo's leader-
ship on the issue.
--Nonetheless the Egyptians have, despite their
ambiguities, held to their pledge to allow Jor-
dan to negotiate disengagement on the West Bank.
Sadat apparently has enlisted Saudi Arabia's
support for his position; a Saudi envoy has been
pressing the Syrians and Algerians to let Jordan ne-
gotiate while deferring, but not abandoning, the ad-
vancement of Palestinian national claims to the West
Bank. Saudi Arabia and Algeria may mediate if the
Egyptian-sponsored tripartite meeting runs into dif-
ficulty.
(continued)
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FOR THE PRESIDENT ONLY
The next play lies with the Palestinians, how-
ever. If they are unwilling to compromise, it is
unlikely that other Arabs can be induced to abandon
them openly.
--Algeria is also a key element in the equation.
President Boumediene would probably not go
along with an ultimatum to the PLO if it re-
fuses to compromise.
--The Saudis might in the end also back away
from harsh action.
Sadat's ability to avoid a showdown that could
leave Egypt standing alone depends on his success
in persuading the PLO now that long-term Palestinian
interests can only be served by short-term compro-
mise. Yasir Arafat might be willing to see things
as Cairo does, but he then must be able to maintain
his leadership while he conveys this unpopular posi-
tion to recalcitrants in his organization.
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SAUDI ARABIA - IRAN
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ITALY-GERMANY
West Germany is willing to help Italy secure
EC assistance in .financing Rome's large balance-of-.
payments deficit. Specifically German Finance-Min-
ister Apel agreed during talks with Italian Treasury
Minister Colombo this week to support a:three-month
extension of Italy's outstanding $1.9-billion short-
term EC credit, which _expires in mid-September.
Apel supports a .proposal now being considered by the
EC for long-term gc loans for member countries that
have balance-,of-payments problems and believes other
EC members will take favorable action. The two
nance ministers also explored the possibility of
standby German .assistance channeled through the cen-
tral banks of the two countries.
Chancellor Schmidt is expected to endorse the
understandings reached by the finance ministers when
he meets Prime, _Minister Rumor at the end of the
month. The slight relaxation in West Germany's at-
titude follows the Italian parliament's ratification
of austerity tax measures last week.
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FOR THE PRESIDENT ONLY
NOTE
Laos: Prime Minister Souvanna Phouma is sched-
uled to leave Laos on Sunday for several months of
convalescence in France. Souvanna has been making
slow but steady progress in recovering from the
heart attack he suffered six weeks ago. In the
Prime Minister's absence, Communist Deputy Prime
Minister Phoumi Vongvichit will serve as temporary
leader of the coalition. Although Phoumi is nomi-
nally in charge, the political system is. so arranged
that he would be unable tO initiate any abrupt .
changes. Nevertheless, both Communist and non-Com-
munist members of the government are apprehensive
over the effect Souvanna's departure may have on the
present political calm. As a result, both may
choose to proceed cautiously. The Communists have
particular reason to do So since the political sit-
uation has been gradually evolving in their favor
since the new government was formed last April.
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